KULR Technology Group, Inc. (KULR) experienced a decline in its share price after the company released its financial results for the third quarter. While the company managed to surpass revenue expectations, its quarterly losses aligned with analyst predictions. Furthermore, KULR reported a 9.79% decrease in revenue compared to the same period last year.
Despite the stock’s dip, KULR emphasized positive developments within its business. Contract services revenue saw a notable increase of 75.7%, reaching approximately $1.3 million compared to $738,000 in the same quarter of the previous year. This growth in service revenue is considered a promising indicator of future product revenue potential.
In a move to align compensation with the company’s strategic priorities, CEO Michael Mo voluntarily reduced the cash component of his compensation by 33%. This reduction was accompanied by an equity incentive grant that does not vest for a period of 12 months.
Shawn Canter, Kulr’s CFO, highlighted the company’s progress in key areas, stating, “We continue to make progress on our focus areas. Growing relevant KPIs, improving our balance sheet, and streamlining operations. Contract services revenue was up 75% against the same quarter last year, and as we have said, service revenue can foreshadow product revenue to come in the future. Our sales cycles are not necessarily measured in weeks or even months so sometimes it can take a little longer to see the product revenue that results from service contracts.”
KULR’s stock experienced a 16.73% decline to 22 cents after-hours, following a 9.17% gain during regular trading on Monday. This fluctuation in share price reflects investor sentiment in response to the mixed financial performance and the company’s long-term growth strategies.
